With ES futures currently trading at 1550.25, the at-the-money straddle is implying a move of 11.75 points by tomorrow’s expiration. This gives us an upside target of 1562 and a downside target of 1538.50. Now that we have targets, we can use them to look at possible options strategies.
Possible Bullish Set-up:
Buying the ES Apr 5th Weekly 1555-1565 Call Spread for 2.45
Risk: $122.50 per 1 lot
Reward: $377.50 per 1 lot
Possible Bearish Set-up:
Buying the ES Apr 5th Weekly 1550-1540 Put Spread for 2.40
Risk: $120 per 1 lot
Reward: $380 per 1 lot
Both of these trades are setting up for great risk vs. reward ratios and offer a trader a risk effective way to speculate on the unemployment number.